October 27

On October 27, 1986, the British government implemented sweeping deregulation of the London Stock Exchange, an event later dubbed the 'Big Bang'. These reforms abolished fixed commission charges, removed separation between brokers and dealers, and opened up the market to electronic trading. The changes aimed to modernize London's financial sector and enhance its competitiveness with New York. The Big Bang attracted major international banks and investment firms to the City of London. It fueled rapid growth in trading volumes and financial innovation but also increased market volatility. Over the following decades, London solidified its status as a leading global financial center. Critics argue that the deregulation contributed to excessive risk-taking that played a role in later financial crises.

On October 27, 1997, the Dow Jones Industrial Average experienced a significant drop as financial instability from the Asian economic crisis spread to the United States. Investor fears intensified following currency devaluations and bank failures in Thailand, South Korea, and other East Asian economies. The sell-off erased hundreds of points from the Dow, triggering circuit breakers to halt trading temporarily. U.S. policymakers and the Federal Reserve monitored the situation closely to prevent a widespread credit crunch. The event underscored the interconnectedness of global financial systems and the speed at which contagion could occur. In response, investors diversified portfolios and regulators reviewed risk management practices. The fallout prompted discussions on strengthening international cooperation to mitigate future crises.